Writing a business plan is hectic and tedious, but it is essential too. This is because it gives you a direction to move toward your goals. Another benefit of having a business plan is to pitch investors conveniently. If you are looking for investors to invest a significant amount of capital, you will have to present a business plan that outlines your mission, vision and effort you will make to hit the ground running.
No investor will contribute money to your business unless they have an idea of how you will likely grow in the future. You may also need a business plan if you are looking to fund your start-up. A financial institution will look into your business plan and evaluate the chances of successful growth before approving a cash loan in 1 hour in Ireland.
Many of you know that you need a business plan, but a few of you make an effective and worth considering the plan. A business plan does not need to be long like a research paper. If you know the correct format, you can wrap it up in one page. Here is how you can write the one:
In this section, you will talk about your target market that outlines who your target audience will be and what are their needs. Note that it is always better to narrow down your target market because if it is too broad it will bring doubts on your ability to survive the competition, and as a result, you may fail to pitch investors or borrow money from a lender.
A couple of statements are more than enough to tell about your market niche, target audience and their needs. Do not forget to mention how your product differentiates from your competitors. It will not only help investors trust your business ability, but it will also help you target a large number of people.
If you want to stay ahead of your competitors, you will have to sell a different and better product. Do not forget to talk about what you are introducing to your target audience that none of your competitors is.
In this section, you will write a few lines about competitive products and services, opportunities, threats and risks. In other words, you will have to do a SWOT analysis against your competitors to find out how likely you will withstand the fierce competition. You must have an answer to the following questions:
- Which products are more competitive than yours?
- What kind of opportunities do you expect to have in the future?
- What kind of threats will you likely face down the line? Will you be able to give your competitors a run for their money and if yes how?
Make sure that the answer is short and precise. If you use an ambiguous style, nobody will have a clear idea, and in the end, you will have your business plan worthless.
This is when the business plan becomes difficult to write. However, this is the most essential section of your business plan. This is what investors and lenders want to read because it will help them get an idea of how you will take your business ladder up.
In this section, you will talk about how you market your products and services to pitch people. You will have to mention the strategy you will follow in brief to increase your sales. Make sure that you have a couple of strategies in case one does not work.
Coming up with a couple of ways to take your business ahead can easily convince your investors and lenders to invest in your start-up. Make sure that you have mentioned all of the ways succinctly.
Whether you have a start-up or an established business, you cannot escape it. If your business is a few months or years old, you will have to show your cash flow statement and profit and loss statement to the lender if you are looking to borrow money from them.
However, if you have a start-up, you will need to show your assets and other income sources to justify your repaying capacity. Try to have some income records to back your business plan.
Preparing a business plan is quite challenging, but it should not be if you know the right format. It does not need to be too long. You need to mention specific points to give an idea of how you want to get your business off the ground.
Having the right business plan will not only help you have your investors and lenders convinced, but it will also give you a direction. If you are still struggling to make a business plan, you can take help from an expert who can identify your business needs and prepare you an effective plan.